| June 2001 |
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From the New York State Assembly  Sheldon Silver, SpeakerPaul D. Tonko, Chair, Energy Committee |
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Assembly plan will lower energy costs, cut gas tax, protect consumers |
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To help families and businesses struggling with high energy prices, the Assembly has passed far-reaching legislation which will lower energy and gasoline costs for consumers, promote conservation, and help create jobs.
A permanent cap on the gasoline sales tax will give
New York motorists a break at the gas pump, while the
New York State Transitional Energy Plan (NYSTEP) will
save them on energy costs. NYSTEP is a broad-based
initiative that will prevent an all-out energy crisis
in New York by providing consumers with rate relief,
easing the transition to a competitive energy market,
spurring job creation and safeguarding the
environment.
Permanent cap on gasoline sales tax will save
consumers $130 million
New York families are being ripped off at the gas
pump, and there is no end in sight. The president and
the governor have done nothing to help put an end to
rising gas prices –– in fact, the president says he
won’t step in even if prices reach $3 per gallon.
The Assembly’s measure permanently caps the sales tax
on gasoline on the first dollar per gallon — resulting
in real savings throughout the year, not just during the
summer months. The bill also enables localities to lower
their share of the gasoline tax, thereby reducing prices
even further.
Putting consumers first and providing real rate
relief
New Yorkers are looking for real relief from the
disastrous effects of the governor’s deregulation of
the state’s electric power industry. Administratively
implemented in 1997 without public input or
legislative oversight, the governor’s deregulation
plan has failed to provide the competition necessary
to keep consumer costs in check. As a result, New
York’s residential electricity rates are over 80
percent higher than the national average.
That’s why a key component of NYSTEP is the Universal Service Rate, which will give residential consumers a price break on the essential block of electricity they need to run their appliances and turn on their lights. The Universal Service Rate will provide a 25 percent discount on the first 200 kilowatt hours per month – or about the amount of energy needed to maintain the basic necessities of a small household.
NYSTEP will also:
Easing the transition to a competitive market
Because the governor’s flawed deregulation policies
failed to plan for competition, New York ratepayers
are being subjected to possible price gouging and
wild energy price fluctuations. In contrast, the
Assembly plan will protect ratepayers until
competition takes hold and provides consumers with
real choices to lower their energy costs.
The Assembly’s NYSTEP proposal includes the Emergency
Rate Payer Protection Act to smooth the transition to
a competitive market over a three-year period. The
measure directs the PSC to require utilities to take
every step necessary to avoid price increases,
including long-term purchase agreements. The measure
also restricts utilities’ ability to pass wholesale
price increases on to consumers by requiring the PSC
to review automatic rate adjustments to ensure they
are just and reasonable.
Harnessing energy to create jobs
The Assembly Majority’s groundbreaking Power for Jobs
program has been responsible for the creation or
retention of 300,000 new jobs since its inception
four years ago. Now, the Assembly plans to tap New
York’s vast power generation capacity in Western New
York to expand this highly successful program.
Scheduled upgrades at the Niagara and St. Lawrence
hydro projects are expected to result in 400
megawatts of additional generating capacity. The
Assembly plan will utilize this capacity for a new
regionalized version of the Power for Jobs program ––
centered in Empire Development Zones and in areas
around the Niagara and St. Lawrence hydroelectric
projects –– where it will bring more low-cost power
to New York businesses that create and retain jobs.
The Assembly’s program will provide a boost for the
economic revitalization of those areas of the state
with the greatest need.
Keeping the lights on
The Assembly plan has the only proposal to bring more
electricity generating capacity on-line sooner. In
those cases where a developer is repowering an
existing site and cutting pollution from the site
significantly, the licensing period is cut from 12 to
six months. This legislation brings more power and
environmental benefits to New Yorkers. Also, the
package contains protections that keep utility
companies solvent and ensure that the lights will
stay on.
Protecting the environment
Reducing energy costs makes New York more attractive
to businesses, and plays a critical role in economic
development efforts throughout the state. The
Assembly’s NYSTEP initiative goes even further by
combining reduced costs with a $1.5 billion
investment in energy efficiency projects and
alternative energy sources, including solar, wind and
fuel cells.
In keeping with the Assembly Majority’s long-held
view that energy policy and environmental protection
must go hand-in-hand, NYSTEP uses common-sense
environmental initiatives to reduce air pollution
from power plants, emphasize energy conservation and
efficiency and encourage new, clean energy
technologies.
Under our plan, approval time for newer, cleaner
power plants to replace inefficient facilities will
be cut in half. And New Yorkers will be encouraged to
purchase vehicles that will save on fuel costs and
protect the environment through elimination of the
state sales tax on highly fuel efficient vehicles
and super-ultra-low emitting vehicles (SULEV).
In addition, NYSTEP contains a measure calling for an
energy conservation plan for all state agencies to
eliminate wasteful and non-essential energy use.
The Assembly plan will help New Yorkers meet
expanding energy needs without compromising our
commitment to improving the state’s air quality –– ensuring healthier communities while saving working families money both at the gas pump and on home heating costs.
Eliminating the Gross Receipts Tax
Skyrocketing energy costs wreak havoc on family
budgets. Last year the Assembly helped eliminate the
Gross Receipts Tax (GRT) on industrial and commercial
users. We also reduced the GRT on residential utility
ratepayers –– saving residential customers $175
million a year.
This year the Assembly’s budget resolution takes the
next step and eliminates the Gross Receipts Tax
altogether for residential consumers –– saving
ratepayers $150 million statewide.
Continuing the Assembly’s commitment to
keeping energy available and affordable
Competitive energy and gasoline prices are essential
to revitalizing New York’s economy and giving real
relief to hard-working New Yorkers.
The Assembly’s gasoline tax cap, its NYSTEP package,
and its plan to eliminate the GRT pave the way to
meaningful relief by reducing the high cost of
gasoline and power, continuing our commitment to
keeping energy affordable for working families and
businesses, creating jobs and protecting the
environment. It’s just part of the Assembly Majority’s
continuing efforts to make New York a better place
to live, work and do business.
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